Optically Clear Adhesives Market Expected to Reach $3.8 Billion by 2030-Allied Market Research

According to a new report published by Allied Market Research, titled, "Optically clear Adhesives Market by Resin Type, Device Structure, Thickness, Application, and End-Use: Global Opportunity Analysis and Industry Forecast, 2021–2030,"the global optically clear adhesives market was valued at $1.6 billion in 2020, and is projected to reach $3.8 billion by 2030, growing at a CAGR of 8.8% from 2021 to 2030.

The optically clear adhesives made from silicone are liquid form adhesives used for bonding glass panels, electronic cables, sensors, touch screen panels, and others. Since silicone can maintain its elasticity and stability in both high and low temperatures that makes optically clear silicone adhesives suitable for bonding applications at varied temperatures. It has excellent electrical properties and can be formulated to be electrically insulative with high electric strength or can be conversely electrically conductive. Furthermore, it is resistant to moisture, weathering, and chemicals that make it a perfect choice for outdoor Signage, automotive, aerospace, and other applications.

Optically clear adhesives are employed for bonding applications in displays and sensors in a wide range of electronic devices such as mobile phones, tablets, monitors, and others. It also exhibits excellent optical properties such as high transmittance, low friction, enhanced brightness, contrast, and other optical characteristics that improve the picture quality. Since they are solely used in display applications, the development of the consumer electronic industry emerged as a dominating factor driving the optically clear adhesives market. For instance, according to an article published by Business Line, the global smartphone sales to end-users grew by 26% during the first quarter of 2021. These factors are predicted to notably contribute toward the global market.

However, availability of alternative choice of adhesives in the market is anticipated to hamper the market growth. The increase in spending on R&D has led to a vast product portfolio of adhesives. There are a large number of adhesive products available in the market for each industry starting from construction to automobile and electronics to optical.  

The activated covalent bonding technology helps in creating bonds on uneven surfaces. In this technique, a chemical process activates OH radicals on the component surface that are brought together to create a permanent and strong covalent bond. The traditional bonding processes were highly dependent on the use of adhesive fluid at the interface between two components to fill the gap for bonding purposes. Activated covalent bonding, on the other hand, does not need an introduction of the third material in the bonding process. Optical clear adhesives are expected to develop some of the novel applications in infrared radiation (IR) optical assembly due to the elimination of adhesive glue with similar strength and mechanical properties. This factor is anticipated to create remunerative opportunities for the expansion of the pressure sensitive adhesives market in the future.

The optically clear adhesives market is segmented on the basis of resin type, device structure, thickness, application, end-use, and region.

By resin type, the market is segregated into acrylic, polyvinyl acetate, polyurethane, silicone, epoxy, and others. The acrylic resin type dominated the global market in terms of revenue in 2020, with over one-third of the total share. This is attributed to the fact that use of acrylic optically clear adhesives in pressure-sensitive applications such as touch screens of smartphones, LCDs (liquid crystal displays), and other electronic devices may boost the market growth. Furthermore, the increasing use of acrylic optically clear adhesives in bonding applications of touch screens and sensors, digital infotainments systems, and other body panels in the automotive sectors may fuel the market growth. In addition, both developed and developing nations such as the U.S., Switzerland, India, China, and others are constantly engaged in upgrading their fighter jets where the acrylic optically clear adhesives are used in bonding indium tin oxide (ITO)-based transparent windshields of various fighter jets.

By device structure, the global optically clear adhesives market is classified into flat, edge-curved, and others. The flat device structure dominated the global market in terms of revenue in 2020, with over four-fifth of the total share. Proliferating demand for large-screen televisions, smartphones, tablets, monitors, and other electronic devices where optically clear adhesives are widely used for bonding applications of displays and touch screen sensors may propel the market growth. Furthermore, increasing utilization of flat panel displays in the healthcare industry for high-pixel diagnostic applications may lead the optically clear adhesives market for flat device structures to witness a significant increase in demand.

By thickness, the global optically clear adhesives market is classified into less than 100 μm, 100-200 μm, 200-300 μm, 400 μm and above. The 100-200 μm thickness segment dominated the global market in terms of revenue in 2020, with over three-seventh of the total share. The main application of 100-200 μm thick optically clear adhesives for bonding of handheld gaming devices, camera & video cameras displays, optically clear laminations for sealing and protecting sensors, and infotainment system.

By application, the global market is divided into mobile phones, tablets, monitors, televisions, outdoor signage, automotive, and others. The mobile phones application dominated the global market in terms of revenue in 2020, with over one-fourth of the total share. The utilization of optically clear adhesives for bonding applications and enhancing picture quality of mobile phones is the major key market trend in the global market. For instance, Henkel AG & Co. KGAA a leading manufacturer of optically clear adhesives reported an increase in sales for its Loctite, Loctite Ecobond F13, and other products among smartphones, tablets, and other electronic devices manufacturing sectors in 2020. Furthermore, the increased customer outlook and pent-up demand surged the sales of mobile phones in developing economies with an average of one device per person.

By end-use, the market is fragmented into electrical & electronics, automotive, aerospace, and others. The electrical & electronics application dominated the global market, with over five-seventh of the total share in 2020. The utilization of optically clear adhesives in devices such as mobile phones, tablets, monitors, digital kiosks, smart watches, and others is the major key market trend in the global market. The proliferating demand for mobile phones where optically clear adhesives are widely used as a prime bonding material for displays, touch screens, and others may fuel the market growth.

Region-wise, the optically clear adhesives market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. The North America optically clear adhesives market size is projected to grow at the highest CAGR during the forecast period and accounted for major optically clear adhesives market share in 2020, the automotive industry in Canada is growing at a rapid pace where optically clear adhesives are used as a prime bonding material for flat displays of digital instrument clusters, infotainment systems, and others. In addition, the region has a strong presence of key technology leaders such as Apple, HP, Dell, and others, which are consistently adding value by producing highly advanced computers, smartphones, laptops, and others where optically clear adhesives are employed in touch screens and sensors.

Key players operating in the global optically clear adhesives market include Delo Industrial Adhesives LLC, Dow Inc., Dymax Corporation, Henkel Ag & Co. KGAA, Lintec Corporation, Nitto Denko Corporation, Dexerials Corporation, Tesa SE, The 3M Company, and Showa Denko Corporation.

COVID-19 analysis

The novel coronavirus is an incomparable global pandemic that has spread to over 180 countries and caused huge losses of lives and the economy around the globe. The optically clear adhesives market has been negatively impacted due to the wake of COVID-19 pandemic owing to its dependence on electronics, automotive, aerospace, and other sectors. According to an article published by The Economic Times, the exports of electronic devices such as computers, smartphones, and others have dipped due to supply chain issues. Also, several electronics companies have either shutdown or shrank their operations due to the risk of infections among the workforce where optically clear adhesives are used as a prime bonding agent for displays and sensors. This has temporarily hampered the demand for optically clear adhesives market amid the COVID-19 period. In addition, the falling income of customers has led to contraction of the demand of optically clear adhesives among the automotive sectors. For instance, according to a report published by Wipro, the sales of passenger cars saw a 30% decline in March 2020 as compared to March 2019, owing to lockdowns and shutdowns of auto plants. In addition, the travel restrictions imposed by the governments of various countries have led the aerospace & aviation sectors to witness temporary downfall. Also, COVID-19 has put a temporary break on various aircraft manufacturing projects which in turn has decreased the demand for optically clear adhesives among the aerospace & aviation sectors.

However, the medical sectors have shown an impressive growth during the COVID-19 period. For instance, according to a report published by India Brand Equity Foundation, the healthcare sectors is expected to reach $372 billion by 2022, driven by rising health awareness and increasing income. In addition, the healthcare sectors have witnesses an increase in demand for advanced digital instruments where optically clear adhesives are used in display bonding applications of touchscreens & sensors of MRI machines, CT scanners digital X-ray machines, and others. This has strengthened the position of optically clear adhesives market in the medical sectors. Furthermore, the rising sale of smartphones, laptops, tablets, and other consumer electronic devices have reported a rise in sales during the first quarter of 2021. This is anticipated to enhance the performance of optically clear adhesives market for consumer electronics segments post COVID-19 scenario.

Key findings of the study

• The epoxy resin type is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 9.7% from 2021 to 2030.
• The edge-curved device structure segment is anticipated to register the highest CAGR of 9.3% during the forecast period.
• The mobile phones application is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 9.9% from 2021 to 2030.
• The 100 – 200 μm thickness segment is anticipated to register the highest CAGR of 9.0% during the forecast period
• The electrical & electronics end-use application segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 9.2% from 2021 to 2030.
• Asia-Pacific garnered the highest share of 44.1% in 2020, in terms of revenue, growing at a CAGR of 7.7%.